I tried this skin betting and it does not suit my taste.  I prefer the bet with money involved.  I do not think this kind of scenario is different from gamblers who lost huge amount of money on a platform.  The bet method is different, but the psychology behind it is the same.

I can say your friend has regained his control when he stops skin betting, to recover from the "shame" of losing money, it will take time.  The secret of moving on is letting go and accepting the losses. If a person has too much pride, it will take some time, but eventually, they will be ok discussing such stuff with anyone.